So, want to talk about the history of Uranium Mining, here is a nice read on the Market factors that are affecting the Industry:
goldsheet.simplenet.com
Chucka ( OK, Thanks.) But the thing here is that the Russian stockpiles might affect the market for 3 years < I think this is a half year old research report> and that the NRC controls permitting and production more than other entities. With the advant of Nuclear industries being changed with technology from NUKE, from the ideas that are to be shown the world in that Periodical - Nuclear Waste ( Yes, but one of the TECHs at Rhombic )that is comming to the Newstands so to speak; THIS WEEK- well, it just seems that NUKE is worth MORE. IMHO. Beats staking a uranium mine! LOL.
<<...The alternative feed contracts usually take the form of a flat fee with very favourable profit
margins. This helps to buffer IUC against any downturn in the price of Uranium. In-fact, the
number of alternative feed contracts in the market are probably higher during low, stable
uranium prices than when prices are soaring. In addition, the scale of alternative feed
contracts IUC is currently bidding for are much larger than the ones they successfully won in
1998. If they are successful in a few of these proposals, profit in 1999 will improve
considerably.
IUC has several developed mines on standby, several partially developed mines, numerous
targeted mines and exploration properties within the states of Colorado, Utah, Arizona,
Wyoming and South Dakota. If uranium prices increase, IUC will be able to act fast and
take advantage.
International Uranium is stockpiling uranium ore from their operating mines. When the
current alternative feed commitments end (approximately May 1999), the mill will be able to
immediately process the ore during a period of improving markets.
The White Mesa Mill recovers vanadium as a co-product of its uranium production. This
reduces the cost of recovering uranium and makes the mill a low cost producer. IUC can
produce a profit even in this week market. IUC's profits should improve with its leverage to
the price of uranium.
The principals of International Uranium are very experienced in the trading of uranium (future
contracts). They correctly predicted a soft market in 1998 and probably have purchased
low price uranium from the spot market for delivery against higher priced contracts. Their
trading activity and experience should be able to add value to the bottom line in 1999 and
2000.
International Uranium has the ability to use its current strong financial position to secure a
working line of credit. Although they don't need it now, a line of credit will give IUC the
ability to act fast to capture available opportunities in an improving market.
International Uranium conducted approximately 53,000 meters of drilling on their exploration
ground in Mongolia. The results have not yet been reported but I expect that they continued
to add to the resource calculated in 1997. This exploration property comprises of a very
large land area and one that I believe IUC is better off joint venturing. This property can be
producing in two to three years if market conditions improve. In the short term, this
exploration project, although successful, will not add value to the shareholders.
As I have mentioned in the past, some of the hidden potential of IUC lies in its ability to store
low level radioactive waste at the mill. Licensing for this activity is a long drawn out process
and although I had hoped for some sign of approval during late 1999, I understand we are
still about two years away from any approval. Waste storage is a necessity with a high profit
margin for those with storage facilities. IUC management may be able to look at other
storage facilities, at various stages of licensing, to participate in this lucrative business.
International Uranium is continuing to do what it must to build upon its early success. What it
cannot control is the price of the commodity. As I have shown above, IUC is buffered against any
downturns in the price of uranium while maintaining a leverage on any upside. What can be
expected from the markets?
click here, enter your E-mail address, and send for your FREE TRIAL
WHAT CAN'T BE CURED, MUST BE ENDURED
The international uranium industry is highly competitive in many respects, including the supply of
uranium. IUC markets uranium to utilities in direct competition with supplies available from a
relatively small number of Western World uranium mining companies, from certain republics of the
CIS and Mainland China and from excess inventories, including inventories made available from
decommissioning of military weapons. To some extent the effects of the supply of uranium from the
CIS republics are mitigated by a number of international trade agreements and policies, including
suspension agreements entered into by the United States with certain republics of the CIS, including
Russia, that restrict imports into the United States market.
“The outlook for uranium prices is tied to western utilities, which have covered their medium-term
uranium needs in contracts signed over the past few years. There is a high degree of uncertainty
regarding future uranium prices because of the unresolved status of 500 tonnes of highly enriched -
weapons grade - uranium stockpiled by Russia. That is equivalent to about 400 million pounds of
benchmark U308, which would be sufficient to meet global demand by commercial reactors for
almost three years.
Under a 1993 intergovernmental agreement, Russia is committed to deliver that uranium to the US
over 20 years. But it is not yet clear who would control the sale of those stockpiles. A trio of
western producers - Cameco, Cogema and Nukem has been attempting to secure control to sell a
portion of the Russian uranium to introduce it into the market in an orderly fashion. Recent
negotiations, however, have failed to yield an agreement. While there are restrictions on the sale of
Moscow's uranium in the US and Europe, Russia's atomic energy ministry is free to sell its product
on the open market to countries in Asia, eastern Europe and Latin America. Some western
producers are concerned that Russian uranium sales could destabilise the market and further
depress prices. Cameco, Cogema and Nukem remain hopeful they can strike a deal to market a
portion of the Russian uranium.”
World wide consumption ranges from approximately 150 to 170 million lbs. U3O8 while
production ranges from 85 to 95 million pounds. Without ratified agreements in place with Russia
and other CIS republics, utilities will want to continue to secure long term contracts.
One of the disappointing features of the spot uranium market in 1998 was its low volume. Spot
volume was at 20% of levels seen in the early 1990's. The low spot volume will cause the quoted
price of U3O8 to be volatile. An increase of over US$1 to $10.75 per lb. in the spot price over
the last month is a good example of this. After the price increase in 1996, utilities began to exercise
upward quantity flexibilities in their long-term contracts. This reduced the need to buy on the spot
market.
While most uranium is sold through long-term contracts at a premium to the spot price, the value of
about half of that uranium is tied to the market price at the time of delivery. One nuclear industry
analyst said that simply stabilising the spot price was an important development, given the current
environment. If the low spot volume continues, producers will no longer want to reference spot
prices in long-term contracts. In addition, producers should stop giving quantity flexibilities within
their contracts. If these changes take place, and there is some evidence that they will, than spot
demand, and the price of uranium, will begin to grow again.
Over the last few months, several senior producers such as Cameco, IMC Global, Cogema
Resources and Uranium Resources have cut back production. These producers are meeting sales
commitments by drawing on uranium inventories. This is a positive development and a sign that
prices will eventually improve. With International Uranium, our speculation is buffered against a
decrease in the price by the revenue from alternate feeds while leveraged to any increases.
THE MILL GETS BY GOING
In the worst case, markets will stabilize near current values. ..>> dated 1-1-99
P.P.S.- I found this while reading Today WSP news at CSW on the todays news section:
it was one of two free reseach reports one of which was a Diamond Sampler: Will URL link it next:
Winspear Resources Ltd -
Winspear most active conference
Winspear Resources Ltd WSP
Shares issued 39,238,388 1999-07-02 close $4
Monday Jul 5 1999
Week ended July 2nd
by Stockwatch business reporter
Winspear was last reviewed in Forum Watch for the week ended June 25 and continues to hold first place among Canada Stockwatch's most active conferences. There have been no newsworthy developments reported in the interim.
With much of the analysis and commentary of the first 3,000 bulk sample results exhausted and, as pointed out by Technical Trader, Winspear's stock settling into the $3.90 to $4.20 trading range, the number of posts to the conference dropped off over the course of the week. As has happened in the past, some of the discussion turned to broader topics. Rod_of_Rock broached the subject of synthetic diamonds: "With the prospect of such rich diamond deposits as we have in the NWT coupled with the fact that we can produce flawless diamonds from scratch bodes well for the consumers of the stones as the price of diamonds should drop in value as the market becomes flooded. This is sort of the way of gold, except with diamonds it is cost-effective to produce the synthetics." Positively Charged gave that suggestion short shrift: "The age and crystallization process that produces real diamonds by old mother nature gives easily identifiable clues as to the authenticity. They will always be superior to any lab fake and if you don't think that this will happen I suggest you get a large cauldron and try to turn lead into gold." In a subsequent post, he added: "To suggest that the scarcity of mined diamonds is now the cause of its own demise is the most illogical nonsense ever posted on the Web. I suppose you are now going to tell us that if we happen to own a Rembrandt or Van Gogh we should be worried because the rarity of the objets d'art will cause fakes to overrun the market, making our paintings worthless!" WillP joined the debate, challenging several of Rod_of_Rock's claims and commenting: "The synthetic possibilities threaten a market, but it's not the existing natural diamond market, in my opinion." Pendragon also contributed an interesting post about alchemy, remarking: "I don't doubt for a second that technologies such as low-energy transmutation of metals (in addition too, the fabrication of synthetic gems indiscernible from the real deal) is now possible, any more than fuels much more efficient than gasoline are possible. But the powers that be and those with a vested interest will always keep them securely under wraps." For those with a philosophical bent, the discussion broadened further, touching on such notions as "truth" and "good" before turning to more familiar issues.
DiamondWillie raised some questions regarding the potential for leaked information: "So, there are diamontaires, people who work with and for diamontaires, secretaries, WSP directors, and probably a lot of others I can't think of, who have knowledge of the results before they are released. My point? Not sure, except that the cock and bull about how everything is so hush hush and tight as a cork doesn't make a lot of sense when you think about it." Optimistic Bias dismissed that suggestion, offering an account of the mechanics of the evaluation process: "The diamonds that are sent for valuation are: (1) sent to numerous evaluators for processing, (2) the origin of the stones is kept secret so that the evaluators only know that they are being tasked with presite rough, (3) the batches are interspersed with rough from other producers so that they would not be able to discern which batch is WSP, (4) to leak or even guess that the stones were from a bulk sample from a potentially huge diamond mine to even friends or family would mean prison time and disgrace to the professionalism that they so proudly cherish." In support of DiamondWillie, WillP pointed out that newsletter writer John Kaiser had evidently learned that three stones comprised 75 per cent of the value of the previous mini-bulk sample well in advance of any official acknowledgement of that fact. Optimistic Bias countered: "I think his leak more likely came from closer to home and the 'loose-lipped diamentaires' comment was a smoke screen. I think it was shortly after this JK revelation that RT stopped all communication with JK."
In the hiatus, as Winspear followers wait for news, the intensity of the discussion also seems to have dropped off. Many of the exchanges late in the week involved some banter about WillP's golfing mishap, apparently brought about by BarbP's club contacting his head in the course of an enthusiastic chip shot. It is perhaps a mark of the general esteem for WillP that nobody pointed out that someone standing that close to another golfer, particularly a novice, bears full responsibility for having their skull creased. More seriously, it was noted in the last issue of Forum Watch that the tone of the discussion had grown somewhat subdued following the release of the bulk sample results; indeed, some posters have grown cautious. As the week was drawing to a close, Jspec commented that he had been doing some calculations regarding what might be expected from pit three and was encouraged to post them by WillP and GeoffB. Douglas, however, had other thoughts: "Yes, I agree that it is possible to come up with some stunning figures for the next bulk...but it just sets off a whole new bout of increasingly unrealistic expectation. I firmly believe we are all better off letting the results speak for themselves." DiamondWillie countered: "I don't like to see anybody discouraging somebody else from sharing their thoughts based on a theory that it will produce 'unrealistic expectations' in others. As one of those 'others,' I'm over 21 and am responsible for my actions. I don't need censorship to save me from myself." As it turned out, Jspec did provide some calculations and offered a number of different scenarios, closing with: "Take your pick here or in another scenario or none." A discussion of corporate strategies and the relative merits of a number of diamond explorers is also well worth a read. Winspear closed out the week at $4.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
old url (better for printing
HERE Diamonds:
goldsheet.simplenet.com
P.P.P.S.- My favorite REAL Diamond Company:
Subject 8393
Subject 8393
As they are near Montello a that BHMNF company I linked in errow last night!
seept alsoau myy Diamond Ruff Cutt Gemm:
birchmountain.com |
